PhonePe’s revenues grew by just Rs 3.02 crore to Rs 42.79 crore in FY18 but the startup burned around Rs 791.03 crore in net losses, way higher than Rs 129.01 crore in FY17.
PhonePe’s revenues grew by just Rs 3.02 crore to Rs 42.79 crore in FY18 but the startup burned around Rs 791.03 crore in net losses, way higher than Rs 129.01 crore in FY17. In all, the e-payments wallet’s losses swelled over 18 times than its operating revenue.
In its filings with the Registrar of Companies, the company said it posted around the 14-fold rise in revenue under sales of services, commission income, and interest income for the year ending March 31, 2018.
The overall expenses of the company also grew significantly from Rs 146.34 crore in FY 17 to Rs 840 crore in FY18. Of the total expenses, PhonePe spent around 72 per cent of the money on marketing at Rs 602.28 crore. Around 16 per cent of the total expenses went towards the employee expenses.
PhonePe is not the only online marketplace to incur losses. Its parent company, Flipkart, comprising Flipkart Internet and Flipkart India, posted combined losses of Rs 3,222 crore in FY18. While Flipkart India, the company’s B-to-B arm, registered a manifold jump in losses at Rs 2,063.8 crore, its e-commerce platform Flipkart Internet posted a consolidated loss of Rs 1,160.6 crore for FY18.
PhonePe’s competitor and e-payments leader Paytm’s parent company, One97 Communications, also reported a higher net loss of Rs 1,490.4 crore for the last fiscal year, compared to Rs 879.6 crore in the previous fiscal. One97 Communications’ revenues from operations, however, grew manifold to Rs 2,987.41 crore in FY2017-18 as against Rs 624.76 crore in FY2016-17.